West Virginia Tax Rates

West Virginia administers several taxes that affect both individuals and businesses. These taxes support state programs and local public services. Indinero offers support for tax services for people who refer to this material and need assistance with planning or compliance.

Income Tax

West Virginia imposes a personal income tax on residents and on nonresidents who earn income within the state.

Key points:

  • The state uses a graduated income tax structure with multiple brackets.
  • Rates range across several percentage levels based on taxable income.
  • Most forms of income are taxable, including wages, self employment income, interest, and dividends.
  • Taxpayers may qualify for credits and deductions related to family status, low income support, and specific activities defined in state law.

Sales Tax

West Virginia levies a statewide sales and use tax on most retail sales of tangible personal property and on selected services.

Key points:

  • The statewide sales tax rate is 6 percent.
  • Municipalities may impose additional local sales taxes, which can bring the combined rate above the state rate depending on location.
  • Groceries are generally exempt, along with prescription drugs and certain manufacturing related purchases.
  • Some services are taxable, such as telecommunications, lodging, and certain repair services.
  • Businesses that sell taxable goods or services must collect the tax, keep appropriate records, and file periodic returns.

Property Tax

Property tax in West Virginia is administered at the county level and supports schools, county governments, and municipal functions.

Key points:

  • Property is assessed annually based on market value.
  • State law defines classification categories with specific assessment ratios for real estate and business personal property.
  • Local taxing authorities set levy rates, which determine the amount owed by property owners.
  • Property owners may appeal assessed values if they believe they are incorrect.

Corporate Tax

West Virginia imposes a corporate net income tax on businesses earning income in the state.

Key points:

  • The corporate net income tax applies to the taxable income of corporations operating in West Virginia.
  • Most corporations must file an annual return.
  • Apportionment formulas determine the portion of income that is taxable in the state for multistate businesses.
  • Certain credits may reduce liability for qualifying investments or activities.

Business and Occupation Tax

Some municipalities in West Virginia impose a Business and Occupation tax on the gross receipts of certain business activities.

Key points:

  • The tax applies at the local level, not the state level.
  • Rates vary depending on the type of business activity, such as retail, manufacturing, or service.
  • The tax is based on gross receipts rather than net income.

Excise Taxes

West Virginia levies various excise taxes on selected products and industries.

Key points:

  • Excise taxes apply to motor fuel, tobacco, alcohol, soft drinks, and specific resource extraction activities.
  • Rates differ by product type.
  • Producers, distributors, or sellers must comply with licensing and reporting requirements.

Severance Tax

West Virginia imposes severance taxes on the extraction of natural resources such as coal, oil, and natural gas.

Key points:

  • Rates vary depending on the resource extracted.
  • The tax is collected from producers engaged in extraction activities.
  • Revenue supports state programs and economic development initiatives.

R&D Offer Quiz

Step 1 of 3

Answer to find out if you're eligible for R&D tax credits.

Do the activities performed relate to a new or improved business component’s function, performance, reliability, quality, or composition?(Required)
For Example: A mid-sized packaging company develops a slightly modified cardboard box design to improve its stacking strength (reliability) for warehouse storage, involving minor adjustments to the corrugation pattern to reduce collapse under standard weight loads.
Is your company trying to discover information to eliminate uncertainty concerning the capability or method for developing or improving a business component?(Required)
For Example: A furniture manufacturer investigates whether a cheaper wood adhesive can hold joints as effectively as the current one during assembly, testing bond strength to resolve doubts about its capability in standard production lines.
Do the activities performed constitute a process of experimentation?(Required)
For Example: An auto parts supplier runs a series of bench tests on different lubricant formulations to find one that reduces friction in engine bearings more effectively, systematically comparing wear rates over simulated operating cycles.